Why the JB Hi-Fi (ASX:JBH) share price surged 19% in March

The JB Hi-Fi Limited (ASX: JBH) share price surged higher in March as broader investor sentiment pushed the electronics share higher.
The post Why the JB Hi-Fi (ASX:JBH) share price surged 19% in March appeared first on The Motley Fool Australia. –

The JB Hi-Fi Limited (ASX: JBH) share price was on fire in March. Shares in the Aussie electronics retailer soared 19.3% higher to close the month at $51.10

Why the JB Hi-Fi share price soared higher in March

The S&P/ASX 200 Index (ASX: XJO) finished the month on a strong note as JB Hi-Fi announced a new partnership with Zip Co Ltd (ASX: Z1P). Zip will provide a fully integrated payments solution for both JB Hi-Fi and The Good Guys stores.

The JB Hi-Fi share price managed to surge higher throughout the month as a strong corporate earnings season continued the momentum into March. 

JB Hi-Fi itself had a strong half-year results release on February 15. For the six months ended 31 December 2020, JB Hi-Fi reported a 23.7% jump in sales to $4.9 billion. Online sales surged a whopping 161.7% to $678.8 million as Aussies spent big despite lockdowns in parts of the country.

JB Hi-Fi Australia reported a 23.3% increase in sales to $3.36 billion. That, coupled with strong results in New Zealand and The Good Guys segments, boosted overall sales and profit.

Earnings before interest and tax (EBIT) climbed 76% to $462.8 million with an 86.2% increase in net profit to $317.7 million.

The JB Hi-Fi share price actually slid 17.2% in the two weeks following the result. However, a large portion of that can be attributed to shares trading ex-dividend on 25 February. That $1.80 per share interim dividend pushed the shares lower to end the month.

Stronger investor sentiment, however, pushed ASX 200 shares like JB Hi-Fi higher in March. That included fellow ASX retail share Super Retail Group Ltd (ASX: SUL) climbing 7.0% higher in March.

It wasn’t all good news for investors in Aussie retailers last month as electronics retailer and JB Hi-Fi competitor Ltd (ASX: KGN) shed 7.6% last month.

Foolish takeaway

The JB Hi-Fi share price surged higher last month despite no new ASX announcements from the ASX 200 retailer. Stronger investor optimism and a significant earnings boost helped propel the Aussie electronics retailer’s shares higher to close out the month.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ltd. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the JB Hi-Fi (ASX:JBH) share price surged 19% in March appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!